SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and guard wages $ 1,180,000 Vehicle operating expense 610,000 Vehicle depreciation 490,000 Customer representative salaries and expenses 520,000 Office expenses 380,000 Administrative expenses 680,000 Total cost $ 3,860,000 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages 50 % 35 % 10 % 5 % 100 % Vehicle operating expense 70 % 5 % 0 % 25 % 100 % Vehicle depreciation 60 % 15 % 0 % 25 % 100 % Customer representative salaries and expenses 0 % 0 % 90 % 10 % 100 % Office expenses 0 % 20 % 30 % 50 % 100 % Administrative expenses 0 % 5 % 60 % 35 % 100 % Required: Complete the first stage allocations of costs to activity cost pools.

SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system:

The distribution of resource consumption across the activity cost pools is as follows:

Required:

Complete the first stage allocations of costs to activity cost pools.

Blue Bayou Middle School wants to raise money for a new sound system for its auditorium. The primary fund-raising event is a dance at which the famous disc jockey Kray Zee will play classic and not-so-classic dance tunes. Grant Hill, the music and theater instructor, has been given the responsibility for coordinating the fund-raising efforts. This is Grant’s first experience with fund-raising. He decides to put the eighth-grade choir in charge of the event; he will be a relatively passive observer.

Grant had 500 unnumbered tickets printed for the dance. He left the tickets in a box on his desk and told the choir students to take as many tickets as they thought they could sell for $5 each. In order to ensure that no extra tickets would be floating around, he told them to dispose of any unsold tickets. When the students received payment for the tickets, they were to bring the cash back to Grant, and he would put it in a locked box in his desk drawer.

Some of the students were responsible for decorating the gymnasium for the dance. Grant gave each of them a key to the money box and told them that if they took money out to purchase materials, they should put a note in the box saying how much they took and what it was used for. After 2 weeks, the money box appeared to be getting full, so Grant asked Lynn Dandi to count the money, prepare a deposit slip, and deposit the money in a bank account that Grant had opened.

The day of the dance, Grant wrote a check from the account to pay Kray Zee. The DJ said, however, that he accepted only cash and did not give receipts. So Grant took $200 out of the cash box and gave it to Kray. At the dance, Grant had Dana Uhler working at the entrance to the gymnasium, collecting tickets from students and selling tickets to those who had not pre-purchased them. Grant estimated that 400 students attended the dance.

The following day, Grant closed out the bank account, which had $250 in it, and gave that amount plus the $180 in the cash box to Principal Sanchez. Principal Sanchez seemed surprised that, after generating roughly $2,000 in sales, the dance netted only $430 in cash. Grant did not know how to respond.

Identify as many internal control weaknesses as you can in this scenario, and suggest how each could be addressed.

Directions: Complete each of the following problems. Be sure to show your work in order to receive full or partial credit. Calculators are allowed along with 1 page (1 side) of notes any any necessary statistical tables.

1. (True / False) Estimating parameters and testing hypotheses are two important aspects of descriptive statistics.

2. (True / False) A statistic is calculated from a population and a parameter is calculated from a sample.  

3. (True / False) Descriptive statistics include visual display of data, measures of central tendency, and dispersion.

What type of data (attribute, discrete numerical, continuous numerical) is each of the following variables:

4. ______________________ The manufacturer of your laptop computer

5. ______________________ The number of tickets in a movie theater

Which level of data (nominal, ordinal, interval, ratio) is each of the following variables?

6. ______________________ Your social security number

7. ______________________ Temperature in degrees Celsius

8. 1,000 names are selected from a phone book containing 50,000 people by choosing every 50^th name. Which sampling method is this?

A) Simple random sample.

B) Systematic sample.

C) Stratified sample.

D) Cluster sample.

9.From its 32 regions, the F.A.A. selects 6 regions, and then randomly audits 25 departing commercial flights in each region for compliance with legal fuel and weight requirements. This is an example of

A) simple random sampling.

B) stratified random sampling.

C) cluster sampling.

D) judgment sampling.

10. Suppose we want to estimate vaccination rates among employees in state government, and we know that our target population is 55 percent male and 45 percent female. Our budget only allows a sample size of 200. We randomly sample 110 males and 90 females. This is an example of

A) simple random sampling.

B) stratified random sampling.

C) cluster sampling.

D) judgment sampling.

11. In 2018, the mean per capita expenditures on public libraries for all 50 states was 18 with a standard deviation of 5. The data follow a bell-shaped curve.

      a.    According to the empirical rule, what percentage of the expenditures should fall between 13 and 23? ________________

2. Within what interval should approximately 99.7% of the expenditures fall? _________________

12. Find the standard normal area under the curve for each of the following

Blue Bayou Middle School wants to raise money for a new sound system for its auditorium. The primary fund-raising event is a dance at which the famous disc jockey Kray Zee will play classic and not-so-classic dance tunes. Grant Hill, the music and theater instructor, has been given the responsibility for coordinating the fund-raising efforts. This is Grant’s first experience with fund-raising. He decides to put the eighth-grade choir in charge of the event; he will be a relatively passive observer. Grant had 500 unnumbered tickets printed for the dance. He left the tickets in a box on his desk and told the choir students to take as many tickets as they thought they could sell for $5 each. In order to ensure that no extra tickets would be floating around, he told them to dispose of any unsold tickets. When the students received payment for the tickets, they were to bring the cash back to Grant, and he would put it in a locked box in his desk drawer. Some of the students were responsible for decorating the gymnasium for the dance. Grant gave each of them a key to the money box and told them that if they took money out to purchase materials, they should put a note in the box saying how much they took and what it was used for. After 2 weeks, the money box appeared to be getting full, so Grant asked Lynn Dandi to count the money, prepare a deposit slip, and deposit the money in a bank account that Grant had opened. The day of the dance, Grant wrote a check from the account to pay Kray Zee. The DJ said, however, that he accepted only cash and did not give receipts. So Grant took $200 out of the cash box and gave it to Kray. At the dance, Grant had Dana Uhler working at the entrance to the gymnasium, collecting tickets from students and selling tickets to those who had not pre-purchased them. Grant estimated that 400 students attended the dance. The following day, Grant closed out the bank account, which had $250 in it, and gave that amount plus the $180 in the cash box to Principal Sanchez. Principal Sanchez seemed surprised that, after generating roughly $2,000 in sales, the dance netted only $430 in cash. Grant did not know how to respond. Identify as many internal control weaknesses as you can in this scenario, and suggest how each could be addressed.

Stephen Hall is a 25 year-old with an entrepreneurial dream and an eclectic background. His dream is to start a travel agency that specializes in sports-related trips. These would include travel packages to attend professional sports events throughout the world and multi-country tours that are built around specific sporting competitions. Stephen knows there are travel agencies that already do this, but he feels it is a growing market and his knowledge of sports and his ability to work well with customers should help him be successful. He estimates he needs $150,000 bankable business plans for entrepreneurial ventures 236 to start this business, most of which will go into marketing expenses. His father has agreed to give him $50,000 and now he is writing a plan to show to potential investors. Stephen’s background includes interest and experience in many sports. He was an excellent wrestler in high school and college where he majored in computer science and graduated with a 2.8 grade-point average. After graduating, he worked at a storefront travel agency that had no particular specialty. He currently is a customer-service rep for a regional airline at the major airport near his home. While in high school and college, Stephen held many part-time jobs including running the deep-fat fryer in a fast food restaurant, working for a moving company, and being a security guard at a movie theater. Without overstating his qualifications, Stephen wants to point out his knowledge, relevant work experience, and personal skills that will make potential investors confident in supporting his venture. But he feels somewhat defensive talking about his background. His school career was not stellar and his jobs have been largely minimum wage and clerical. Stephen is considering not including a resume in his plan and avoiding discussion of his own background in the text of his business plan. He is also wonders if there is some way to define his business strategy that would better match his qualifications or if he can describe his experience and skills in the best light without exaggerating. 1. Playing the role of a potential investor, what do you consider Stephen’s strengths and weaknesses? 2. What kind of resume should Stephen prepare? 3. Write a one paragraph description of Stephen that stresses how his qualifications and abilities could make this venture successful.

Many entrepreneurial ventures raise money from venture capitalists. Getting venture capital funding is a complex process of finding one or more partners to commit to back the company on its journey. The relationship between entrepreneurs and venture capitalists is important – it can be very positive and help a venture succeed, or it can be stressful and have negative implications. We will spend quite a bit of time trying to understand what venture capitalists do and how they structure deals with entrepreneurial ventures. The big question – Can venture capitalists help you and your venture succeed? Venture capitalists are professionals who specialize in investing in high growth potential ventures. They typically raise funds from institutional investors, corporations or individuals and form partnerships that deploy capital over a period of up to ten years. The venture capitalists act as General Partners and the investors are Limited Partners. Venture capital firms have two income streams. They charge a management fee based on the amount in the fund and they take a share of the profits – that share is called the carried interest. For most funds, the management fee is under 2% per year and the carried interest percentage is between 15 and 30%. Most venture capital firms have several partners and invest in multiple companies, often in separate rounds of financing for each company. Venture capital firms tend to specialize in geography, stage of investment, and/or industry. At one end of the spectrum, some funds only invest in early-stage companies. Other firms invest in more established companies to fund growth. The professional venture capital industry has existed since the 1940s though the industry remained small until the mid-1990s as the Internet revolution took hold. Total capital deployed in the industry is under $300 billion. There are several hundred active venture capital funds in the United States and around the world. Venture capital is a “hits” business. Even the best investors lose money or make modest returns on a majority of the companies they back. A few great successes generate most of the value, as was true with companies like Intel, Genentech, Apple, Amazon, Google, Facebook and more recent companies like Uber and Airbnb. A small number of venture capital firms consistently back big winners. In recent years, Sequoia, Benchmark, Accel, and Greylock have had a disproportionate number of “Unicorn” hits – these are companies that attain valuations of $1 billion or more. There is enormous variety in the industry. Some funds are small – from $10 million up to $100 million. These firms are willing to back new companies and write initial checks of several hundred thousand up to a few million dollars. Most venture funds reserve capital to make follow-on investments in companies that are doing well. Larger funds – those up to $1 billion in capital – will only invest in companies that might need tens of millions of dollars over the life of the fund. Venture capitalists are active investors. They often insist on a seat on the board of directors and they negotiate for certain control rights such as the right to replace the CEO or to approve any large capital expenditure or corporate action. Venture capitalists almost always use a standard investment vehicle – convertible preferred stock – though the exact terms depend on many factors. Some venture capitalists have been successful entrepreneurs while others have experience in large companies or finance.

What do you think about raising money from venture capital firms? How do you decide whether you should do so?

4. If you burn 2.3 grams of a compound off the top of crème brulee, and it has carbon, oxygen, and hydrogen, would you be able to determine the empirical formula if you collected 2.7 grams water, and 4.4 grams carbon dioxide, and if yes, what is the empirical formula of the compound?

5. Which of the following has more atoms? 5.0 grams F2 or 8.0 grams S?

6. When you burn gasoline, a few different reactions can happen. One is C8H18(l) + O2(g)  H2O(l) + CO2(g) If you react 5.0 kg gasoline with 1.0 kg oxygen, how much water could you form?

7. Balance, identify the oxidizing agent and the reducing agent in the following reaction by assigning oxidation numbers, and give the phase (s, l, g, aq) of each reactant and product. H2O + Zn + HCl(aq)  H2 + H2O + ZnCl2

8. How many liters of 0.500 M H3PO4 would it take to react with 8.00 L of 0.100 M NaOH?

9. If you want to dilute some salt water solution from 3.0 M NaCl to 0.20 M NaCl and have 9.0 L after dilution, what would you need for starting volume?

4. If you burn 2.3 grams of a compound off the top of crème brulee, and it has carbon, oxygen, and hydrogen, would you be able to determine the empirical formula if you collected 2.7 grams water, and 4.4 grams carbon dioxide, and if yes, what is the empirical formula of the compound?

5. Which of the following has more atoms? 5.0 grams F2 or 8.0 grams S?

6. When you burn gasoline, a few different reactions can happen. One is C8H18(l) + O2(g)  H2O(l) + CO2(g) If you react 5.0 kg gasoline with 1.0 kg oxygen, how much water could you form?

7. Balance, identify the oxidizing agent and the reducing agent in the following reaction by assigning oxidation numbers, and give the phase (s, l, g, aq) of each reactant and product. H2O + Zn + HCl(aq)  H2 + H2O + ZnCl2

8. How many liters of 0.500 M H3PO4 would it take to react with 8.00 L of 0.100 M NaOH?

9. If you want to dilute some salt water solution from 3.0 M NaCl to 0.20 M NaCl and have 9.0 L after dilution, what would you need for starting volume?